Ann: Half Yearly Report and Accounts, page-48

These are my notes from my first read through of the HY report. I have not read the comments above yet so apologies for repeating anything.

The consolidated cash flow report shows that receipts from customers (excluding receipts from loan customers) was actually flat compared to the Dec ’20 HY results (p13).

Majority of revenue from lending ($627K) compared to SAAS & Payments ($291K) (p16).

Total revenue – contracts with customers (excludes loan interest revenue) actually fell compared to the Dec ’20 HY PCP. From $629K down to $555K p17).

The breakdown of revenue from contracts with customers includes $75,000 earned from website development. Interestingly note 10 (p22) states that “services have been provided to… related entities” including $74,205K to Tikitbook AU Pty Ltd (an entity related to Adrian Floate). So I am not sure if I understand this correctly but it seems that almost all the money earned from website development was for services provided to Tikitbook?

Non-current assets are made up of $62M for goodwill and only $1.3M valuation of the software we own. The goodwill we are carrying represents the ridiculously inflated prices we have paid for acquisitions (Invigo, Greenshoots and Appstablishment) – see my recent post on the amounts we paid for these businesses. The good news is these were paid in script not cash, but the ridiculous value for goodwill we are carrying on the balance sheet reflects the over-valuation of these acquisitions.

The other thing I learnt is that I hold over 1% of the options which is a lot for a little fish like me. That said, I have only invested what I can afford to lose in such a speculative stock. In hindsight, this stock was a top of the market exuberance that I regret. There may well be value in this project in the long run but the fact that at this early stage the core SAAS and Payments product revenues are actually falling tells me that at this stage the story is still all the promise of potential and not actual results.